Markets are still largely digesting the Fed decision from yesterday but so far in European trading, it's been a case of fading the overnight moves. The outcome of the FOMC meeting had a bit of something for everyone and traders look to be erring to the side of sticking with the status quo in the run up to the Fed this week. That at least for now, with the US weekly initial jobless claims also still to get through later.
Gold traded down earlier to a low of $3,634 and that threatened to see a near-term downside break. The drop saw price fall below both its 100 (red line) and 200-hour (blue line) moving averages for the first time in four weeks. But alas, it is looking like that could just be a false breakout. Now, we're seeing price action move back up above both key near-term levels as buyers wrestle back near-term control:
The thing about the Fed decision yesterday is that while it wasn't that dovish, the details don't really take away much from what markets have priced in before this week. As such, the bigger picture outlook remains the same until US economic data releases in the weeks ahead prove otherwise.
Typically once the Fed begins to ease monetary policy, they tend to keep that going. So, that is something to keep in mind as well. For gold, that could yet keep the upside leg running with many houses now calling for a push to $4,000 next.
That being said, I still wouldn't rule out a short-term pullback before we start to get into the stronger seasonal months in December and January.
This article was written by Justin Low at investinglive.com.Hence then, the article about gold recovers to turn back higher on the day was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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